Using the Services of a Family Office

Why do I need the Family Office?

If you have a sizable estate, an amount of wealth or significant heritage that you wish to safeguard for your family in order for future generations to succeed a business, receive an inheritance or maintain a family legacy, then you require the services of the Family Office. This dedicated ‘organisation’ created solely for you will be dedicated to taking care of all issues and will call upon the expert services of different professionals.

This means that you do not need to hire different services or offices to take care of the individual components, and can enjoy the peace of mind that you are retaining the active services of a team that will monitor and action all associated requirements under one roof. The expertise comes both from internally, and externally, in consultation with the client.

Within the Family Office, you will have the services of lawyers, accountants, investment advisors, administrators and real estate agents – amongst others – who will all be utilised to offer tailored services based on your own personal circumstances and status.

High net-worth families prefer the convenience of one office as opposed to the confusion and complications of having to hire multiple professionals. They also benefit from all experts involved communicating and working in tandem to ensure there is a common understanding, goal and level of commitment across the board – one that is concerned solely with the client.

What services are involved in a Family Office?

The portfolio of services required will vary from family to family, but typically can include:

As a general service, the Family Office can act as a Secretariat, broadly overseeing all matters, and covering a diverse range of actions, from setting up direct debits for regular or ongoing invoices, bills and other payments, to acting as your representative for operations overseas; sourcing foreign experts and services abroad.

The services are many and myriad, and will be tailored to each specific client, but can also include: insurance cover; guardian of important and/or confidential, or time-sensitive family documents; filling and timely filing of forms; handling redemption notices; maintaining inventory, and a variety of tasks or actions that are considered tedious, time-consuming or complex for the client.

Under this function Kaimakliotis & Co will also act as a contact and liaison with other service providers that will not fall under the umbrella of your personal Family Office. This can include banks, schools, government offices, storage facilities, showrooms, custodians, managers, consultants, brokers and any other manner of services that are part of your family’s existing network of specialists or contacts.

Through the natural process of the Secretariat, it is often the case that we are able to find solutions for consolidating fees or commissions, or optimising services that make significant savings for the client in the long-run.

Succession Planning

Succession Planning is not an ‘option’ for wealthy families – it’s an insurance that the family’s life’s work and legacy is correctly appropriated.

This includes funds, trusts and intergenerational succession planning, and is not as simple as naming a person/s whom you wish to entrust to be a successor or inheritor of an estate. In most instances, estates are divided among multiple family members, and often, the immediate heir is not selected to take over a business due to capabilities, or until a specifically named age. Nor is a Succession Plan as basic as drawing up a will.

Families are complex, and as such, serious questions need to be asked and explored; potential challenges or obstacles navigated, and a contingency set out for any eventuality. Through this in-depth analysis, not only is family wealth safeguarded, but also, any potential conflicts or misunderstandings within the family can be addressed – and avoided. As part of this process, the Family Office will also facilitate family meetings, acting as an impartial chair.

The Family Office comes into its own for Succession Planning as it is a perfect example of how multiple disciplines and offices would ordinarily be required (legal, tax, investment, business managers and the like), but is made substantially simpler and more streamlined through the use of the single Family Office organisation.

Wealth Management

When it comes to Wealth Management, the Family Office is a valuable tool thanks to its independent nature that has no ulterior motives or underlying designs on a family’s wealth, which sometimes can occur with external bodies, such as banks, accountants and tax consultants.

The advice and service you receive from your personal Family Office is impartial and rounded, based on a complete and thorough knowledge of industries and with an ethos of integrity. Furthermore, the Family Office follows the explicit instructions of the client and understands their needs.

Wealth Management is important for many wealthy individuals due to the constraints on their time. Through the Family Office, they enjoy the peace of mind that there is an organisation working for them and their investments by keeping a firm eye on markets, opportunities and assets, whilst also dealing with all relevant tax planning and legal issues associated with this domain.

The Family Office does not necessarily mean that all services must be carried out in-house, and that the client is required to start from scratch; on the contrary, the Family Office will tie in all existing service providers and act as your advocate for existing banks, financial advisors and accountants should you wish to maintain the relationship you have with them.

And conversely, a new set of service providers can be added to cover diverse issues such as: education, insurance, estate planning and distribution and more.

Working with any existing providers, the Family Office will generate consolidated reporting and transaction statements, and may benefit the client in the long-run by finding ways to improve the services you are offered, whether it is to make them more efficient, or more cost-effective.

Investment Portfolio

The Investment Portfolio service can be considered a linking service with Wealth Management, but is also a service in its own right due to its specialised nature.

Expert knowledge and advice are utilised to identify the kinds of investments a client wants to be make, based not only on capital, but also ethics and interests. This is done through mapping your current investments and your goals for future investing.

Keeping track of both existing investments and new investment opportunities, the Family Office can handle asset allocation, portfolio creation and maintenance, and set-up committees for strategic investment, implementation and management of investment portfolios.

Immovable Assets Portfolio

The Family Office will offer expertise in real estate matters and serve as a one-stop-shop for all related issues for immovable property from the role of advisor and agent, to property administrator or guardian.

Many property moguls do not have the time to monitor their portfolio of properties or oversee the administrators, managers and additional acquisitions. The Family Office controls the portfolio and undertakes the associated transactions; the daily running of costs, and the allocation of individuals and the execution of their services, including those who maintain property on your behalf such as rental agents, repair and cleaning companies.

The Family Office will also keep paperwork and payments – such as property taxes and the like – in order and ensure their timely filing or action.

Property acquisition also falls under this branch of the Family Office, whilst also linking in with the Investment Portfolio arm of the organisation.

Movable Assets Portfolio

Collections of value that fall under Movable Assets may include antiques, jewellery, artwork, coins, cars and other valuable items that are considered to form part of a family’s wealth or estate, whether the value and significance to the family is monetary or heirloom.

Often, collections are held outside of the family residence, or require regular care and maintenance by third parties. The Family Office coordinates any such functions, whilst also keeping an account of the collection through inventory, quality checks and upkeep.

The Family Office also assists in the further acquisition of items and undertakes the process of acquiring a desired item from acting as your representative at auctions to handling paperwork and insurance.